Love it or hate it, fast food is a big part of the modern world. Many people make it their daily staple because of convenience and budget. Others will avoid it at all costs.
Either way, we must recognize the entrepreneur who built the McDonald’s franchise into what it is today.
Who Is Ray Kroc?
Despite what many might believe, Ray Kroc was not the actual founder of McDonald’s. Nonetheless, his savvy ideas propelled the restaurant franchise to great heights.
Let’s read about his humble beginnings and what led him to success.
Birth and Early Years
On October 5th, 1902, in Oak Park, Illinois, Rose Mary née Hrach and Alois “Louis” Kroc welcomed Ray Kroc into the world. Ray’s parents were Czech American.
His father made a fortune on land speculation in the 1920s after immigrating to America. However, he lost everything in the 1929 stock market crash.
Hamburger University Was Founded by Ray Kroc.
Young Kroc studied in public schools in Oak Park, Illinois. However, he never graduated. When Kroc was 15, he lied about his age to join the Red Cross.
He wanted to be an ambulance driver but didn’t complete his training in time for the war. After that, he worked as a piano player, real estate agent, and salesman for paper cups.
The Beginning of the McDonald’s Franchise
In 1941, Kroc became the exclusive sales agent for Multimixer, a machine capable of preparing five milkshakes simultaneously.
His work brought him to San Bernardino in 1954, where a restaurant caught his attention. This small operation, run by brothers Richard and Maurice McDonald, had purchased several Multimixers.
Kroc was impressed by the effective business because it focused on a small menu (burgers, fries, and drinks), allowing it to maintain quality and service speed.
The restaurant also used an assembly-line system to serve up its orders.
Ray Kroc Was Included in Time 100: The Most Important People of the Century.
Coincidently, the McDonald brothers were seeking a new franchising agent. Smelling an opportunity, Kroc founded McDonald’s System, Inc. (later McDonald’s Corporation) in 1955.
The agreement included a franchise fee based on the new restaurants’ gross sales payable to the brothers.
Building the McDonald’s Restaurant System
On April 15th, 1955, Kroc’s first McDonald’s restaurant opened its doors in Des Plaines, Illinois.
Gross sales grew to $235,000 that year with the launch of two more stores. Kroc continued selling franchises with owners managing their own restaurants.
To keep with standardization, Kroc started Hamburger University in 1961. This training program operated at a McDonald’s restaurant in Elk Grove Village, Illinois. Here, franchisees received lessons on the proper methods to run an outlet.
“The Quality of an Individual Is Reflected in the Standards They Set for Themselves.” – Ray Kroc
Kroc disagreed with the McDonald brothers. They desired to maintain a small number of restaurants, despite a new wave of fast-food chains appearing all over America with the same model.
The brothers also forbade him from making changes to the original blueprint despite Kroc’s pleas.
In 1961, Kroc paid the McDonald brothers $2.7 million to take over the business. Within six years, he had started 228 restaurants, recording sales of $37 million.
He served as president of the company from 1955 to 1968, board chairman from 1958 to 1977, and senior chairman from 1977 right up to his death.
“I Was an Overnight Success All Right, but Thirty Years Is a Long, Long Night.” – Ray Kroc
From the very beginning, Ray Kroc wanted a restaurant system that provided consistently high-quality food prepared with uniform methods.
He wanted the burgers, fries, and beverages to taste the same, whether they came out of a restaurant in Alaska or Alabama.
Kroc built a restaurant system based on the philosophy of a three-legged stool. The legs represented the franchisees, suppliers, and employees. He believed that the strength of the foundation depended on these three legs.
Other Affiliations
When Kroc ceased being active in McDonald’s operations, he started looking for new challenges.
His lifelong favorite sport was baseball. He discovered that the San Diego Padres was on the market and bought it in 1974 for $12 million. Sports aside, Kroc was a philanthropist and lifelong Republican. In 1977, he published Grinding It Out: The Making of McDonald’s.
“The Two Most Important Requirements for Major Success Are: First, Being in the Right Place at the Right Time, and Second, Doing Something About It.”- Ray Kroc
Personal Life
Kroc married three times, and his first two marriages ended in divorce.
His wives were Ethel Fleming (1922-1961), Jane Dobbins Green (1963-1969), and Joan Beverly Mansfield, whom he married in 1969 and remained with until his death. He had one daughter, Marilyn (born in 1924), with his first wife.
Later Years and Death
In December 1979, Ray Kroc suffered a stroke, which led him to seek alcoholism treatment in Orange, California. He died of heart failure on January 14th, 1984, at Scripps Memorial Hospital in San Diego. He was 81 at the time.
He was buried at El Camino Memorial Park in Sorrento Valley. At his death, Kroc’s personal wealth equated to around $600 million, and the McDonald’s chain covered 7,500 outlets worldwide.
“Success Is the Sum of Small Efforts – Repeated Day In and Day Out.” – Ray Kroc
Conclusion: Focus on Quality and Standards Above All Else
While Ray Kroc had nothing to do with the first McDonald’s restaurant, he is the man responsible for creating one of the most successful fast-food chains in the world.
He loved what he saw in that San Bernardino restaurant and worked to replicate it tens of thousands of times over.
“Luck Is the Dividend of Sweat. The More You Sweat, the Luckier You Get.” – Ray Kroc
Timeline of Ray Kroc
Timeline of Ray Kroc
1902:
Ray Kroc is born in Oak Park, Illinois, near Chicago.
1917:
Kroc lies about his age and joins the Red Cross.
1922:
Kroc marries Ethel Fleming.
1924:
Kroc and Fleming receive their first and only child, Marilyn.
1941:
Kroc becomes the exclusive sales agent for Multimixer.
1954:
Kroc visits a restaurant in San Bernardino, California, run by the McDonald brothers.
1955:
Kroc founds McDonald’s System, Inc., and the first McDonald’s restaurant opens its doors in Des Plaines, Illinois.
1958:
Kroc becomes board chairman of McDonald’s.
1961:
Kroc buys out the McDonald brothers with $2.7 million and launches Hamburger University. He also divorces his wife.
1963:
Kroc marries Jane Dobbins Green.
2023
1968: Kroc steps down as president.
1963:
Kroc divorces Jane Green and marries Joan Beverly Mansfield.
1974:
Kroc buys the San Diego Padres for $12 million.
1977:
Kroc steps down as board chairman and becomes senior chairman. He also publishes his autobiography, Grinding It Out: The Making of McDonald’s.
1979:
Kroc suffers a stroke and checks into an alcoholism treatment center.
1984:
Kroc dies of heart failure on January 14th at Scripps Memorial Hospital in San Diego.
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Lessons Learned From Ray Kroc
There are lessons you can learn from Ray Kroc, and we will go over a couple of them next, along with our take on each.
Lesson One, Keep the Right People Around You
There are many benefits to working with the right people and people smarter than you. Ray Kroc surrounded himself with the right people, and it paid off.
A financial expert, Harry J. Sonneborn, advised Ray Kroc to focus on McDonald’s real estate rather than its products, which was the turning point in the company’s success.
If Sonneborn had not advised Ray, he might not have come up with the idea alone.
You can achieve success by surrounding yourself with a smart group of people.
Here are a few benefits you’ll gain from doing so.
Become More Knowledgeable
Surrounding yourself with knowledgeable people allows you to pick up on their knowledge and learn more simply by working with them.
Discover New Ideas
You will always gain new ideas when you surround yourself with smart people.
So be on the lookout for the good ones and adapt them to your needs.
Whenever you come across a good idea, ask yourself how you can apply it and if you can make it work for your situation.
Improved Networking
People you work with have networks of people they deal with, so you can tap into this by asking them to refer you to people they know.
With a strong network of resources, you can achieve many things because you can tap into the talent of others to provide you with products, services, and advice.
Solve Problems You May Not Have Been Able To Solve on Your Own
You have the opportunity to solve problems when you have knowledgeable people by your side.
Although you may not have been able to solve them on your own, or even if you could, you can expect the outcome to be better because more ideas will flow during problem-solving brainstorming sessions.
You Become More Alert and Focused
When you surround yourself with smarter people to avoid falling behind or appearing less intelligent, you’ll always be thinking and possibly competing with those who are smarter than you.
You will think carefully about the situation instead of rushing through it. Your focus will be on getting things done accurately rather than rushing through them.
Can Help Unlock Doors
With a strong team of people at your side, you can remove barriers holding you back.
Brainstorming sessions can help expand your potential and achieve more than if you tried to deal with an issue alone. Smart teams can also help you grow more efficiently and promote growth.
Lesson Two, Focus On Partnerships
Ray Kroc once said, “Contracts are like hearts. They’re made to be broken.” So let’s take a look at a few points about contracts below.
Focus on the Partnership You’re Getting In to
Donald Rumsfeld once said it’s easier to get into something than to get out of it.
Regarding partnerships, you need to focus on the relationship you’re getting into rather than having a solid contract.
Ask questions similar to the following when considering a partnership?
- Is there anything that could go wrong?
- What are my options if it doesn’t work out?
- Is this a good fit, or could I do better?
- Does this partnership affect my family?
- Will I have to make a lifestyle change?
- How much time, energy, and money will I have to invest?
- What are the pros of this partnership?
- What are the cons of this partnership?
Having a contract doesn’t mean you’ll have a good relationship with the people you’re going to partner with. What’s even worse is having a contract that you want out of because you can’t work with them.
A good way to do this is to establish a trial basis for you and your partners. Partnerships are two-way streets.
You have to work well with your partners, and they have to work well with you. If one party is unhappy, the partnership will not be successful.
Even if You Win a Contract Dispute, Do You Really Win?
We feel secure when we have a solid contract. For example, let’s say you have a problem, go to court to sue your partners, and you win.
However, even if you win the lawsuit, your partner may declare bankruptcy, and you may need to go through the legal process for a new settlement.
Your partner may still have to pay the damages, but they may be given a long-term payment plan.
In summary, just because you have a contract doesn’t mean you are safe. Before partnering up with anyone, it is better to build a solid relationship.
Trust Is a Must, but Trust Can Change
When focusing on a partnership, there needs to be a level of trust involved. You can also try a trial period to ensure both parties are satisfied.
When things are going well in a partnership, it doesn’t mean they cannot change; therefore, it’s important to be aware of the possibility of change and to avoid entering into deals, expansions, etc., blindly.
Speak With an Excellent Lawyer Before Getting Into a Partnership
Getting a lawyer to review the partnership agreement is a good idea. A lawyer focuses on the problems and points out flaws in the contract.
You can also ask questions about issues that might go wrong and your options in case they do.
An ironclad contract gives you leverage if things go wrong, so it’s wise to spend the money on the best lawyer before signing a contract.
Frequently Asked Questions
The information in this post answers many of the questions about Ray Kroc. This section provides a summary and any additional information.
1. What did Ray Kroc do before McDonald’s?
At 15, Kroc misrepresented his age to join the Red Cross to become an ambulance driver but did not complete his training.
After that, he was a jazz pianist and real estate agent. He also sold paper cups and Multimixers.
2. Where was Ray Kroc from?
Ray Kroc was from Oak Park, Illinois, near Chicago.
3. Who owns the oldest McDonald’s?
An outlet at 10207 Lakewood Boulevard at Florence Avenue in Downey, California, is the fourth oldest McDonald’s. However, it’s the oldest still standing today. Roger Williams and Bud Landon opened the restaurant, but it is unclear who owns it today.
4. What was the mistake the McDonald brothers made?
They made the classic mistake of cashing out too early.
5. Is the original McDonald’s outlet still standing?
The original McDonald’s restaurant in San Bernardino is still there. However, it houses the unofficial McDonald’s museum.
6. How much did Ray Kroc pay for McDonald’s?
In 1961, Ray Kroc paid the McDonald brothers $2.7 million, equivalent to about $27 million today.
7. Was Ray Kroc ethical?
Ray Kroc was a very ambitious businessman, so he undoubtedly stepped on a few toes. Some say he cheated the McDonald brothers out of millions.
However, in a conversation, Richard McDonald said he didn’t regret the buyout.
8. How much was Ray Kroc worth when he died?
At his death, Ray Kroc was worth $600 million.
9. Who played Ray Kroc in the movie The Founder?
Michael Keaton played the part of Ray Kroc in the 2016 movie.
10. Where was Ray Kroc’s first McDonald’s located?
Ray Kroc’s first McDonald’s restaurant was in Des Plaines, Illinois. It opened on April 15th, 1955.